New figures show Germany could soon overtake the UK in fintech venture capital investment as London struggles to maintain its dominance.
According to reports from the German firm Barkow Consulting, while the UK was 50 percent ahead of Germany in 2016, the gap is closing rapidly.
UK investment has since declined 34 percent, while Germany’s has risen by 38 percent, which could soon lead to the two economies trading places.
“The countries follow very different growth trends: UK fintech investments are declining rapidly, whereas Germany is increasing,” Barkow commented on the findings.
Much has been said about the impact of Brexit on the UK’s fintech ecosystem. Germany wooing UK startups, as the media often reports, could well be a phenomenon, the firm says, but it is too early to say.
“Most importantly: The fintech VC gap is closing rapidly,” it adds.
Bank of England chief Mark Carney stated in a conference in January that he nonetheless intends to make London the world’s leading fintech center.
Speaking about suitable regulation in the UK and in other G20 countries, he added that fintech startups could also exacerbate financial volatility.